Airlines in Hong Kong, China

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Executive Summary

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

TRENDS

Low-cost carriers continued to drive growth for airlines in 2017 with a current value sales up by 20%. Although the value growth was lower than it was in 2016, it still represented strong growth thanks to consumers’ shifting preference for air travel and attitude toward low-cost carriers. Nowadays consumers no longer regard flying low-cost carriers as cheap and uncomfortable. Rather, consumers embrace the flexibility and value for money that low-cost carriers bring in. Consumers are more inclined to save money for spending at the destination rather than spending a big chunk of budget on air travel. Local as well as regional low-cost carriers traveling from or to Hong Kong all saw an uptake in the number of passengers and current value sales.

PROSPECTS

Low-cost carriers is expected to continue registering the highest value CAGR of 8% at constant 2017 prices over the forecast period thanks to an increasingly more positive attitude toward low-cost carriers. Demand for second-tier leisure destinations will sustain low-cost carriers. Expansion plans by local as well as foreign low-cost airlines will also play a role in the growth of low-cost carriers over the forecast period. For example, Hong Kong Express Airway plans to expand its fleet to 50 aircraft by 2018. The player will also streamline its fleet and seat reconfiguration in an attempt to add more capacity and lower unit costs. In addition, Vietnam’s Jetstar Pacific is expected to enter Hong Kong between 2017 and 2022, which will further fuel travel on low-cost carriers. However, lack of facilities, high operating costs and tight regulations will hold back Hong Kong from developing into a full-fledged low-cost hub as seen in Singapore, Malaysia and Japan.

Files are delivered directly into your account within a few minutes of purchase.